Saudi Arabia developed seven steps and solutions to promote small and medium enterprises (SMEs) in the culture, entertainment, and sports sectors, after reviewing local strategies with benchmarking comparisons and consulting experts and the private sector.
In its recent report, the Small and Medium Enterprises Authority (Monshaat) expected the short and long-term solutions identified for the growth of culture, entertainment, and sports sectors to achieve $2.6 billion in GDP, a 41 percent rate.
The report, which Asharq Al-Awsat reviewed, explained the seven quick steps to achieve the gains identified in the short term.
The steps include establishing: an incubator for sports activities and businesses, an investment fund for recreational projects, and an innovative center which provides a space for presentations, organizes a series of interviews, and establishes networking and relationship-building events.
Monshaat clarified that the steps include establishing a unique cultural, entertainment, and sports exhibition to introduce sector leaders and major family businesses and provide shared private spaces.
According to the report, the Authority devised seven solutions to address the limited challenges based on stimulating the market to provide opportunities for small and medium enterprises in cooperation with the government and the private sector and between companies.
It also promotes intellectual property to create marketing opportunities, facilitating market entry and financing access, leading to enhancing the business environment.
Monshaat indicated that SMEs in the culture, entertainment, and sports sector make an average revenue of $640,000 annually, compared to the average revenue generated by emerging sectors of $800,000.
The Authority supports the entry of small and medium enterprises into the sectors by providing financial support through direct lending and guarantees through the Kafala program.
Saudi Arabia places the culture, entertainment, and sports sector at the top of its priorities and is one of the fastest growing sectors in the Saudi economy. The Kingdom established 11 entities to focus on promoting growing sectors.
Since 2016, entertainment has witnessed unprecedented support in Saudi Arabia with training opportunities and increased financing options.
The Kingdom established the Ministry of Culture, which formed several bodies, including one that promotes the film industry and cultural sector.
Riyadh houses many SMEs and is a regional destination that attracts the most significant international corporations and companies. It has hundreds of thousands of companies that employ millions of people and hosts the largest number of SMEs with the highest growth rate of new establishments between 2020 and 2022.